To outsiders looking in, Sprint Nextel seems to be sprinting to bankrupcy.  Not so, according to Daniel R. Hesse, the new chief executive of Sprint Nextel.

“Sprint’s stock slid more than 9 percent after the company announced a $29.45 billion fourth-quarter loss because of a huge write-down related in part to its merger with Nextel Communications. The company also said it was suspending the payment of its dividend and had borrowed $2.5 billion through a revolving credit facility. Mr. Hesse, a former AT&T executive, took over the troubled company only two months ago. When asked if he feared the prospect of bankruptcy, he said, “We have plenty of cash on hand.” Sprint borrowed the $2.5 billion, he said, because it “allows us to focus exclusively on fixing the business” and mitigates the potential financial risk of outstanding loans.”
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